Tensions between the countries have rattled financial markets, with both sides introducing strong tariffs on each other.
US President Donald Trump has brought in a number of tariffs on imports to the US in an effort to increase US manufacturing and protect jobs.
These include import taxes of up to 145% on Chinese goods, but China has hit back with a 125% tax on US products.
Speaking at the International Monetary Fund (IMF) conference on Wednesday, Bessent, who reportedly said previously he expected a de-escalation of the trade war, said the current situation was “not a joke”.
“I think they [China] understand very well, and it’s just a matter of impetus and will,” he said.
“There is an opportunity for a big deal here, that the US is looking to rebalance to more manufacturing, the identity of that would be less consumption.
“If China is serious on less dependence on export-led manufacturing growth, and a rebalancing towards a domestic economy… if they want to rebalance, let’s do it together.”
Aside from the trade war, Bessent called on the IMF and the World Bank to refocus on the core missions of economic stability and development, arguing that they had strayed too far into vanity projects such as “climate change, gender and social issue”.
“These issues are not the IMF’s mission,” he said.
